Nicola Mining Inc. (NASDAQ: NICM) (TSX.V: NIM) (FSE: HLIA) and Ocean Partners UK Limited have each committed $5 million, totaling $10 million, in financing to Blue Lagoon Resources (CSE: BLLG). The investment aims to support the continued development and production ramp-up of Blue Lagoon's wholly-owned Dome Mountain Gold and Silver Project near Smithers, British Columbia, targeting a production rate of 150 to 200 tonnes per day.
Nicola completed its investment through a private placement at $0.60 per share, acquiring 8,333,333 common shares. This builds on Nicola's previous $1 million investment in Blue Lagoon completed in January 2024. Ocean Partners has now committed a total of $8 million to Blue Lagoon, underscoring their confidence in the project's potential.
The financing is strategically significant as it strengthens the relationship among mine development, concentrate marketing, and milling infrastructure. Nicola's wholly-owned Merritt Mill is expected to play an increasingly important role as Blue Lagoon advances production. The mill, located near Merritt, British Columbia, is fully permitted and can process both gold and silver feed via gravity and flotation processes.
Nicola Mining is a junior mining company with a 100% owned mill and tailings facility, and has signed Mining and Milling Profit Share Agreements with high-grade gold projects. The company also owns the New Craigmont Project, a high-grade copper property covering 10,913 hectares adjacent to Highland Valley Copper, Canada's largest copper mine, and the Treasure Mountain Property, which includes 30 mineral claims and a mineral lease spanning over 2,200 hectares.
This investment not only provides Blue Lagoon with the necessary capital to advance its project but also creates a vertically integrated partnership that could enhance operational efficiencies and reduce costs for all parties involved. The collaboration between Nicola's milling capabilities and Blue Lagoon's mining operations is poised to create significant value for shareholders as the Dome Mountain Project moves toward production.
For more information on Nicola Mining, visit their newsroom at Nicola Mining Newsroom. The full press release can be accessed at https://ibn.fm/Wh0vf.
